The poor economy and unstable jobless rate is forcing many Americans to cut back on many expenses, including auto insurance. Industry analysts say that they have seen dramatic changes in the way car owners buy insurance, with many scaling back their coverage to save money. Worse, some drivers have decided to forgo insurance altogether.
Insurance experts warn that with more underinsured and uninsured drivers on the road, it could only be a matter of time before they get in accidents involving law-abiding car owners. In fact, some states like New Mexico have announced that as much as 29 percent of their car owners have no insurance whatsoever. Insurance officials in California recently announced that an estimated one out of every five motorist in the state will have no insurance by 2010 if the unemployment rate continues to climb.
Fortunately, policyholders can purchase underinsured and uninsured driver insurance to cover for any losses or injuries in the event of an accident. Having this form of protection would give car owners peace of mind even if the other parties involved do not have the financial resources to pay for damages or medical expenses.
Car owners will also have to watch out for other factors that can cause damage to their vehicles. Weather events like hail and flood can damage or even completely destroy a car. Having comprehensive insurance coverage would minimize the financial loss by providing protection for these instances. Most insurance providers also offer comprehensive protection against vandalism and car theft. Falling tree branches and other events are also included in the coverage. Of course, motorists living in areas where these situations are common can expect to pay higher premiums. Nevertheless, having adequate coverage can assure car owners that their vehicles and investments will be protected at all times.
Finally, car owners and policyholders should seriously consider getting liability coverage. Depending on state regulations, motorists who are at fault in an accident must pay for the other party’s medical expenses, car repair, and loss income. Without liability coverage, drivers held at fault can lose personal assets if they are sued. With proper and complete liability coverage, however, the policyholders would be protected against any lawsuits filed by the other party.
Insurance experts contend that while purchasing complete coverage can be considerably expensive, the benefits outweigh the cost. They also point out that with the national average for car insurance at its lowest levels in more than a year, car owners can find the best insurance deals.